10 reasons why relying on Google Analytics for revenue is not a good strategy

Posted By: administrator
Posted On: 23 Nov 2019

Google Analytics (GA) is the most popular cloud analytics platform among businesses. It was originally designed as a tool to capture user behaviour on a website. GA leverages a Javascript file also called a pixel, analytics.js. When this file is added to a website, user activity is sent to GA and then the captured data is rendered to the user via the GA interface. Over the years, Google has added more and more functionality to GA, and as a result, the tool has been gaining popularity beyond the capability that it was originally designed for. To the point that 7 out of 10 marketers we talk to rely on GA data for their performance reporting. 

Google relies on the accurate implementation of Enhanced Ecommerce for funnel and transaction data. With the right tagging plan, Google Tag Manager expertise, and developer support, key events in the customer journey can be captured along with the revenue data as well. Relying on GA data for user behaviour data is generally a good strategy, assuming a good implementation of GA is in place. 

However, when marketers start to rely on Google Analytics for revenue, that’s when things start to get a little hairy.

Reasons not to rely on Google Analytics for Revenue :

Sl NoIssueImpact
1You don’t have Enhanced E-commerce setupRevenue numbers are not getting captured
2Analytics.js tag doesn’t fire on-page load?Revenue doesn’t get captured in GAUnderreporting of revenue
3Users call in or email support to cancel ordersRevenue doesn’t get captured in GAInflated revenue numbers in GA in comparison to actual revenue
4Users return the ordersRevenue doesn’t get captured in GAInflated revenue numbers in GA in comparison to actual revenue
5Fraudulent order detected after bookingInflated revenue numbers in GA in comparison to actual revenue because the order was canceled in the E-commerce system
6GA is not capturing data from certain browsers or devicesUnderreporting of revenue
7Users are using the incognito mode on their browsers or have turned cookies offUnderreporting of revenue
9Orders failed to get recorded in the databaseInflated revenue numbers in GA
10GA is not setup to captured discount and coupon applicationInflated revenue numbers in GA
11Google cannot exclude revenues from sample or test ordersInflated revenue numbers in GA

These are not uncommon scenarios. In fact, these are extremely common. After having audited 100s of GA implementations and having done over 70 GA implementations, we have consistently noted that revenue numbers are about 85%-90% of the real revenue numbers. That is why we believe that revenue in GA should not be used for any serious discussions around marketing efficiency or business performance. 

What is the Solution?

Most brands make the mistake of only using Google Analytics primarily because it is free. However, in order to get advanced features, you have to get Google Analytics 360 which will cost roughly $150,000 annually in licensing.  

So, Halo has been made to solve all the above problems effectively. Halo with its intuitive user interface, automated data extracts, a world-class modeling engine, scheduled reports, notification delivery, and a robust visualization layer offers e-commerce businesses a turn-key solution that addresses most of your business needs. 

Sign up for Halo now to get accurate revenue reporting that can be used by every stakeholder in the company.

Sign up for a free trial of Daton today.

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